Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Security Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s organization secretary at enough time stated media stories she said ended up based on “stolen” information and facts in an affidavit with the SSA.
The SSA did examine. It discovered the data wasn't a make any difference of point out safety and the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to show it.
A new board and administration has since taken around the NLC and To date have taken actions to finish corruption on the establishment.
A Point out Security Agency (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished enough motive” for publicity from the media.

The probe into supposed “data protection breaches and sabotage of NLC functions” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to analyze.

Here's

Nevhutanda’s letter,
an affidavit by at this time suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the security company’s “confidential” findings and proposals.
Nevhutanda requested the SSA to investigate the job of NLC staff members while in the alleged leaking of information, and Nene, in her affidavit discovered certain media and experiences that she claimed concerned these leaks.

In the letter outlining its results, the SSA explained to the NLC that although protecting state facts was “a lawful essential targeted at preserving the sovereignty and integrity from the state” this only applied to appropriately classified details.

Although it did not say so directly, the SSA findings implied which the allegedly leaked information and facts didn't drop into this category.

Considerably, the SSA made it clear that the necessity to safeguard state information and facts “isn't going to stop any individual from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation discovered the NLC info involved with the alleged breach was “delicate and privileged in nature, but not labeled in terms of the prescripts in the Minimum amount Information Safety Expectations (Miss out on)”.

“The leakage of your related sensitive Formal NLC information and facts into the media does not pose a danger to countrywide protection,” the SSA explained, including that the effects with the breaches was reputational.

The SSA report located “no evidence of the factual and incriminating nature versus any on the suspected NLC staff that could be determined from the data and knowledge interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does supply enough motive to have these kinds of uncovered during the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs for the duration of a session of Parliament’s trade, marketplace and competition portfolio committee that there was “a conspiracy” by which info “stolen” from your NLC was sent into the US, where by he claimed it had been getting sold to fund a smear marketing campaign in opposition to the NLC.

He was repeating equivalent promises he had Beforehand manufactured in Parliament, which integrated advertisement hominem assaults on GroundUp and this reporter but was thorough not to name either.

“I came in this article On this August dwelling final yr and described to honourable members that details about our beneficiaries has actually been stolen and set in a single point out in the usa,” he explained to MPs.

“We called on the State Stability Company to come take a look at the issue simply because we've been having reviews that our information is generating dollars for media platforms and journalists,” he mentioned. “There has been chat, obviously from a person resource, a single media, that spoke A lot about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but failed to convey to MPs which the SSA investigation were finished Virtually a 12 months earlier.

Proactive funding was at the center on the looting on the lottery. It aspect-stepped the normal grant procedure. The NLC could alone determine a challenge to fund and appoint a non-gain organisation to supervise it.

Right after Nevhutanda very first advised Parliament in 2018 that he had asked the SSA to research the meant breach, the South African National Editors Discussion board issued a statement expressing that his remarks mirrored “an extremely hazardous Frame of mind in which the media is staying blamed for that NLC’s inherent troubles”.

“In lieu of investigating why millions can't be accounted for, the NLC has rather tried to Solid doubt to the integrity of the journalists concerned and has asked the SSA to investigate their resources.”

Proactive projects produced key
Security flaws discovered within the NLC grant funding system during the SSA’s investigation, surface to have been used as an excuse because of the NLC to remove all proactive-funded jobs from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘mystery’ and jobs were removed from the grant funding technique and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Place of work, Government Manager Legal as a way to safeguard [the] details,” Nene explained in her affidavit.

“There was a great deal of inner discussion, with lots of forwards and backwards, about how to proceed to plug the alleged leaks”, a source, who was inside of a senior situation with the NLC at the time, explained to GroundUp. “In the long run, the decision was taken to eliminate every one of the proactive tasks within the process and limit use of A few men and women”.

Some in that handful of people have been implicated in corruption.

Maselwa, who resigned from the NLC numerous decades ago, has become implicated in corruption involving lottery resources. He been given R4.three-million from lottery funds allocated to construct a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he used to build a home in an upmarket gated development in Pretoria. The property is among many paid out for with lottery funds which were frozen after the Asset Forfeiture Device acquired a preservation order in December 2022.

The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to high-ups during the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated within the corruption which overcome the NLC on their own view.

Also implicated are previous board customers William Huma, who resigned after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has given that died.

Each time a new administration, including the complete board and government, took above on the NLC in late 2022 and early 2023, they found a “chaotic mess” within the documentation relating to proactive funding, A great deal of which was paper-dependent. Crucial documents ended up lacking. Documents held for safekeeping by doc storage organization Metrofile were signed out and in no way returned.

The NLC was ready to Recuperate copies of some ผล สลาก paperwork from its Mimecast email archiving procedure plus the laptops of their assistants and guidance workers.

Information reviews
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry possible details protection breaches and the unauthorised use and/or dissemination of confidential details acquired because of undertaking Formal features while in the Commission by NLC staff. The routines are intended to undermine the integrity of the Fee when disrupting the powerful functions [of the NLC] and producing insurmountable reputational damage towards the Fee because the custodian of private details entrusted to it by its beneficiaries.”

His ask for for your SSA to research was supported within an affidavit by suspended NLC business secretary, Nomphumelelo Nene.

Nene is now dealing with a disciplinary inquiry immediately after she was unsuccessful in lawful motion to put aside conclusions of irregular expenditure on her view.

The objective of her affidavit, Nene explained, was “to report the activities which transpired associated with information and facts safety breaches with the Countrywide Lotteries Fee”.

She detailed a variety of news studies which she claimed were being the outcomes of those “breaches” (see at the end of this article).

Nene said that a whistle-blower approached the NLC alleging that certainly one of its workers, Sello Qhino, experienced “furnished her categorized NLC Info and persistently inspired her to supply the information to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded initiatives in Kuruman right after attempts to lift the issue internally were being disregarded, was subsequently fired.

Referring to an 18 November 2018 short article while in the Every day Dispatch concerning the misappropriation of Lottery cash, Nene reported that the NLC discovered then suspended Zintle Rungqu. She was an staff inside the NLC’s East London Business, who was the companion plus the mom of whistleblower Mzukise Makatse’s 3 young children.

Rungqu and Makatse consider Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, With all the NLC paying R470,000 on lawyers to stand for it, but was observed not guilty and permitted to return to work.

“The common Consider these posts is that [they require] classified data relating to proactive funding tasks,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out of your family members property to take the heat off her and his youngsters. Going through homelessness, he moved into an Business office in an vacant manufacturing unit belonging to a colleague.

Both equally Makatse and Qhino are participating in an NLC reparation procedure intended to recognise the damage a number of people suffered for the fingers of your NLC. Apologies and, in some instances, economical compensation are predicted.

“Some individuals have been definitely affected quite negatively by this … This is admittedly painful,” NLC Commissioner Jodi Scholtz informed the Day-to-day Maverick very last calendar year.

“I achieved a couple of these individuals. It was just so coronary heart-wrenching that their total lives have already been turned upside down,” said Scholtz.

Among the Those people she fulfilled had been Qhino and Makatse.

Secure System necessary for whistleblowers
The SSA discovered the absence at some time of a correct channel for whistleblowers to report corruption led them to show towards the media.

“Failure to possess a focused anti-corruption channel will cause employees presenting these kinds of cases outside of the NLC,” the SSA explained in its conclusions.

“Specified the magnitude of corruption in state institutions, it remains vital that it makes sure that the NLC complies with all protection prescripts and that its emphasis is on guaranteeing that illegal and irregular conduct is adequately mitigated against and by making sure an suitable channel for whistle-blowers to report untoward perform devoid of currently being intimidated.”

It advisable that the NLC build a “Risk-free channel” for employees to offer information on any “untoward action” that will not reduce or discourage personnel from blowing the whistle. A whistle-blowers plan, depending on the Shielded Disclosures Act 25 of 2000, is often a requirement.”

Media reviews Nene stated
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Conditioning Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to show NLC corruption. “The posting experienced things of knowledge not offered in the public area, thus elevating concern on interior Facts safety breaches. The allegations within the media were independently investigated,” Nene claimed. “Even so, workers chargeable for divulging categorized information and facts have but to generally be recognized”;
A 28 January 2018 short article published through the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror post revealed on 10 December 2017 plus a new allegation regarding a previous personnel with the title of Mzukisi Makatse. He was charged and summarily dismissed for the danger prompted into the organisation.”
A 16 November 2018 write-up within the Lowvelder regarding the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of acquiring R27-million in lottery grants, the rehab has not been done. “The Lowvelder report contained classified data in terms of NLC coverage, increasing additional worries of interior information safety breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened information security risks throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it absolutely was based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Marketing of Access to Information and facts) request for details with regard to the task, she stated